702 KAR 3:270 - SEEK funding formula
RELATES TO: KRS 156.035, 156.070, 157.320, 157.360, 157.370, 157.390, 157.410, 157.430, 157.440, 157.615, 157.620(1)(a), 158.060(1), 158.135, 160.470, 160.476
NECESSITY, FUNCTION, AND CONFORMITY: KRS 156.035 and 156.070 set forth the Kentucky Board of Education's plenary powers over the management and control of local school districts and disbursement of state appropriations. KRS 156.160(1)(j) requires the Kentucky Board of Education to promulgate administrative regulations for the preparation of budgets and salary schedules for the school districts under its management and control. This administrative regulation is necessary to provide guidelines for the calculations to distribute the funds to school districts through the program to Support Education Excellence in Kentucky (SEEK).
Section 1. Definitions.
(1) "At-risk student amount" means fifteen
(15) percent of the per pupil guaranteed base funding amount calculated
pursuant to
KRS
157.360 times the sum of the average daily
membership of students approved for free meals the prior fiscal year and the
number of state agency children served pursuant to
KRS
158.135.
(2) "Calculated base SEEK funding" means the
guaranteed base funding provided in the biennial budget pursuant to
KRS
157.360(1) plus the add-on
components of the SEEK calculation including at-risk, home and hospital,
students with disabilities, and transportation pursuant to
KRS
157.390(5) and the add-on
calculation for students with Limited English Proficiency.
(3) "Collection rate" means the tax receipts
collected for the prior year divided by the maximum revenue
collectible.
(4) "Exceptional child
amount" means the December 1 exceptional child count of the preceding fiscal
year by exceptionality weighted as follows:
(a) 2.35 times the per pupil base funding
amount calculated pursuant to
KRS
157.360(1) for students with
severe disabilities;
(b) 1.17 times
the per pupil base funding amount calculated pursuant to
KRS
157.360(1) for students with
moderate disabilities; and
(c) .24
times the per pupil base funding amount calculated pursuant to
KRS
157.360(1) for students with
communications disabilities
(5) "Growth" means the percent change in the
second month average daily attendance times the prior year adjusted average
daily attendance pursuant to
KRS
157.360(8).
(6) "Home and hospital instruction amount"
means the total of the prior year's home and hospital average daily attendance
times the per pupil base funding amount calculated pursuant to
KRS
157.360(1), less the
allotment for capital outlay as set forth in the biennial budget.
(7) "LEP" means a student with Limited
English Proficiency, as defined in 703 KAR 5:001, Section 1(52).
(8) "Levied equivalent tax rate" means
estimated permissive tax revenue plus the current year's levied real estate tax
rate, tangible tax rate and motor vehicle tax rate per $100 of assessed value
times the current year's assessment of real estate, tangible property and motor
vehicles times the prior year's collection rate divided by the total current
year's property and motor vehicle assessment.
(9) "Maximum revenue collectible" means the
figure determined by multiplying the sum of the respective yields of the prior
year levied rates by the prior year assessed values of real estate, tangible
property and motor vehicles, and then adding the result to the prior year's
permissive tax revenue.
(10) "Net
General Fund SEEK" means Total State SEEK minus any allocation for Capital
Outlay.
(11) "Partial Day" means a
day containing less time than a regular school day which a student attends on a
regular basis as approved by the local board of education.
(12) "State equalization amount" means 150
percent of the statewide average per pupil property assessment as provided in
the biennial budget.
(13) "Tier I
revenue" means revenue produced by a school district tax levy which, when
equalized by state funds with the state equalization amount established by
KRS
157.440(1)(a), generates up
to the maximum revenue allowable under
KRS
157.440(1)(a).
(14) "Transportation funding" means prior
fiscal year calculated transportation costs for students in grades primary
through twelve (12) transported by school districts as calculated pursuant to
KRS
157.370 and
702 KAR
5:020 adjusted by current year second month growth in
transported students.
Section
2. SEEK Calculation Formula.
(1)
Required data for the SEEK calculation shall include:
(a) Property assessments from the Department
of Revenue provided pursuant to
KRS
160.470(5);
(b) Tax rates levied by school
districts;
(c) Equivalent tax rates
based on tax levies;
(d) Home and
hospital average daily attendance reported on the Superintendent's Annual
Attendance Report (SAAR);
(e) Prior
year adjusted average daily attendance (AADA) reported on the SAAR (calculated
according to the formula in subsection (4) of this section);
(f) The growth factor report;
(h)
The prior year average daily membership of students approved for free lunch
reported through the student information system;
(i) The number of exceptional students ages
five (5) through twenty (20) in each disability category on December 1 of each
year as reported through the student information system;
(j) The number of LEP students as reported
through the student information system; and
(k) The state equalization amount as provided
in the biennial budget.
(2) Assumptions used in the SEEK calculation
shall include:
(a) Equivalent tax rates (ETR)
shall be the lower of the ETR levied in the prior odd numbered year under
KRS
157.440 and the current year; and
(b) Percentage reduction in the allotments
may be made to at-risk student, exceptional child, LEP, and home and hospital
instruction amounts and to the state portion of Tier I funding and to
transportation funding due to appropriations in the biennial budget.
(3) AADA shall be calculated for
students in grades primary through twelve (12) as follows:
(a) Average daily attendance (ADA) shall be
calculated as required by the definition in
KRS
157.320(1).
(b) AADA shall be determined as follows:
1. Subtract the total of the following items
from the ADA:
a. The ADA for noncontract,
nonresident students as reported by local school districts;
b. One-half (1/2) of the total aggregate
kindergarten days attendance divided by the number of days taught;
and
c. The ADA for over-age students
and under-age students not qualifying for funding pursuant to
702 KAR
7:125; and
2. Add the ADA for virtual school and
performance based learning to the result of subparagraph 1 of this
paragraph.
(4) The SEEK calculation shall be determined
as follows:
(a) Calculated base SEEK funding
shall be determined as follows:
1. Multiply
the sum of prior year AADA plus growth by the per pupil guaranteed base funding
amount calculated pursuant to
KRS
157.360(1).
2. Add the following items to the result of
the calculation in subparagraph 1 of this paragraph:
a. The at-risk student amount;
b. The home and hospital instruction
amount;
c. The exceptional child
amount;
d. The transportation
amount; and
e. The LEP student
amount.
(b)
The calculated state SEEK portion shall be the calculated base SEEK funding
minus the local effort required pursuant to
KRS
157.390(5).
(c) The total state SEEK funding amount shall
be determined as follows:
1. Add the total of
the following items to determine a subtotal
a.
The Calculated State SEEK portion;
b. The total state Tier I funding, in
accordance with subsection (6) of this section;
c. The hold harmless provision, if provided
in the biennial budget; and
d. the
pro rata adjustments under
KRS
157.430, if any.
2. Apply prior year adjustments, if any, to
the subtotal in subparagraph 1 of this paragraph.
(5)
(a) The Calculated Base SEEK Funding used in
determining Tier I tax rate and funding levels shall include the full value of
all add-on items before application of any pro rata reductions.
(b) The maximum Tier I equivalent tax rate
allowable pursuant to
KRS
157.440(1) shall be
determined as follows:
1. Multiply the per
pupil Calculated Base SEEK Funding by fifteen (15) percent.
2. Divide the product of subparagraph a. of
this paragraph by the greater of the state equalization amount and the local
district per pupil assessment.
3.
Add the required minimum equivalent tax rate under
KRS
160.470 and
KRS
157.620(1)(a) and any other
equivalent tax rates restricted to the building fund as authorized by the
General Assembly to the result of subparagraph b. of this paragraph.
(6) State Tier I funding
formula.
(a) For local districts which have
levied at or above the maximum Tier I equivalent tax rate under
KRS
157.440(1)(a), the state
Tier I funding formula shall be determined as follows:
1. Calculate the total Tier I revenue by
multiplying the total Calculated Base SEEK Funding pursuant to
KRS
157.360 times the maximum Tier I
participation of fifteen (15) percent pursuant to
KRS
157.440(1)(a).
2. Calculate the total per pupil Tier I
revenue by dividing the total Tier I revenue by the sum of the prior year AADA
plus growth.
3. Calculate the per
pupil local portion Tier 1 funding by dividing the local district per pupil
assessment by the state equalization amount and multiplying the result by the
total per pupil Tier I revenue.
4.
Calculate the state portion per pupil Tier I funding by subtracting the per
pupil local portion Tier I funding from the total per pupil Tier I
revenue.
5. The total state Tier I
funding shall be determined as follows:
a.
Multiply the state portion per pupil Tier I funding by the sum of the prior
year AADA plus growth.
b. Subtract
any pro rata adjustments due to appropriation in the biennial budget from the
product of subparagraph a. of this paragraph.
(b) For local districts which have not levied
at or above the maximum Tier I equivalent tax rate under
KRS
157.440(1)(a), the state
Tier I funding formula shall be determined as follows:
1. Calculate the levied Tier I equivalent tax
rate by subtracting the following items from the levied equivalent tax rate:
a. The required minimum equivalent tax rate
under
KRS
160.470 and
KRS
157.620(1)(a); and
b. Other equivalent tax rates restricted to
the building fund as authorized by the General Assembly.
2. Calculate the per pupil total Tier I
revenue by multiplying the levied Tier I equivalent tax rate times the state
equalization amount.
3. Calculate
the per pupil local portion Tier I funding by dividing the local district per
pupil assessment by the state equalization amount and multiplying the result by
the total per pupil Tier I revenue.
4. Calculate the state portion per pupil Tier
I funding by subtracting the per pupil local portion Tier I funding from the
per pupil total Tier I revenue.
5.
The total state Tier I funding shall be determined as follows:
a. Multiply the state portion per pupil Tier
I funding by the sum of the prior year AADA plus growth.
b. Subtract any pro rata adjustments due to
appropriation in the biennial budget from the product of subparagraph a. of
this paragraph.
Section 3. Calculation of State Equalization
for the Facilities Support Program of Kentucky (FSPK) and Other Equalized
Levies Restricted to the Building Fund.
(1)
Data required for the state FSPK equalization formula shall include:
(a) Property assessments from the Department
of Revenue, as required by
KRS
160.470(5);
(b) Equivalent tax rates based on tax levies
from school districts;
(c) Prior
year AADA plus growth; and
(d)
State equalization amount.
(2) A school district shall not receive state
equalization funds until the full equivalent tax required for participation has
been levied.
(3) The state FSPK
equalization amount eligibility calculation shall be determined as follows:
(a) The per pupil state FSPK equalization
amount shall be determined as follows:
1.
Calculate the maximum eligibility amount by multiplying the state equalization
amount times the required tax levy under
KRS
157.440.
2. Calculate the local effort by multiplying
the per pupil assessment times the required equivalent tax levy under
KRS
157.440.
3. Subtract the local effort from the maximum
eligibility amount.
(b)
The state FSPK equalization amount shall be determined by multiplying the
following three (3) items:
1. The per pupil
state FSPK equalization amount;
2.
The prior year AADA plus growth; and
3. The pro rata adjustments, if any, due to
the appropriation in the biennial budget.
Notes
STATUTORY AUTHORITY: KRS 156.035, 156.070, 156.160(1)(j)
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